Indians funds in Swiss banks, government seeks details from Swiss authorities

New Delhi: The Ministry of Finance claimed on Saturday that Indian customers’ deposits in Swiss banks had been declining since 2019, but said they wanted to ask the Swiss authorities for information on the relevant facts, as well as their opinion on possible reasons for changes in the funds parked by individuals and entities in 2020. In a statement, the ministry said the deposits had been halved but did not give figures. Citing data from the Swiss central bank, PTI reported on June 17 that funds parked by Indian individuals and companies in Swiss banks, including branches in India and other financial institutions, reached a 13-year high. of 2.55 billion Swiss francs (more than Rs 207 billion) in 2020 on a sharp increase in holdings by bonds and similar instruments, although customer deposits have declined. In its statement, the ministry said the figures “do not indicate the quantity of much debated alleged black money that Indians own in Switzerland. Furthermore, these statistics do not include the money that Indians, NRIs or others in Swiss banks may have in their names not of third country entities. “ The ministry noted that customer deposits have actually declined by the end of 2019. The funds held by funds have also more than halved since the end of 2019. “The biggest increase is in ‘Other amounts owed to customers’. This is in the form of bonds, bonds and various other financial instruments,” the ministry added. It also set out the reasons that could lead to the increase in deposits, including rising business transactions by Indian companies, increase in deposits due to the business of Swiss banking branches in India and increase in interbank transactions between Swiss and Indian banks. . The ministry explained that the capital increase for a subsidiary of a Swiss company in India and the increase in the liabilities associated with the outstanding derivative financial instruments could be the other possible reasons.

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“The Swiss authorities have been requested to provide the relevant facts with their opinion on possible reasons for increase / decrease,” the ministry added. An automatic exchange of information in Switzerland and India in tax matters has been in force since 2018. Under this framework, in September 2019, for the first time, detailed financial information on all residents of India who have accounts with Swiss financial institutions was provided to the Indian tax authorities, which must be followed every year. The ministry said the exchange of financial account information regarding residents of each country took place in 2019 as well as in 2020 between both countries. “In view of the existing legal arrangement for the exchange of information on financial accounts (which has a significant deterrent effect on tax evasion by unknown assets abroad), there appears to be no significant possibility of an increase in deposits in Swiss banks. is not outside the black income of Indian residents, ”he added. According to Swiss National Bank data (SNB), the total funds of Indian customers at Swiss banks at the end of 2019 stood at 899 million Swiss francs (6,625 million Rs), and the increase in 2020 times a declining trend of two years about. The total amount of CHF 2,554.7 million (RF 20,706 million), described by the SNB as ‘total liabilities’ of Swiss banks or ‘amounts due’ to their Indian customers at the end of 2020, has CHF 503.9 million included (more than R, 000,000 crore). in customer deposits, CHF 383 million (more than 3,100 million) held via other banks, CHF 2 million (16.5 million) by trustees or trusts, and the highest component of CHF 1 644.8 (almost 13 500 million ) as’ other amounts due to customers in the form of bonds, bonds and various other financial instruments. While the funds classified as ‘customer account deposits’ actually decreased from CHF 550 million at the end of 2019, and the funds raised by fiduciaries also more than halved from CHF 7.4 million, the money raised by CHF 7.4 million other banks were held, during this period rose sharply from 88 million CHF.